Benzinga | Oct 29, 2020 10:07AM EDT

A Preview Of ITT's Earnings

On Friday, October 30, ITT (NYSE: ITT) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict ITT will report earnings of $0.71 per share on revenue of $579.27 million. In the same quarter last year, ITT reported EPS of $0.97 on revenue of $711.90 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 26.8%. Revenue would be down 18.63% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.38 0.74 0.91 0.90EPS Actual 0.57 0.80 0.99 0.97Revenue Estimate 516.61 M 627.07 M 717.25 M 707.02 MRevenue Actual 514.70 M 663.30 M 719.10 M 711.90 M

Stock Performance

Over the past 52-week period, shares of ITT have declined 5.37%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ITT is scheduled to hold the call at 09:30:00 ET and can be accessed here.